Data ExampleE Cost of equipment needed Working capital needed Overhaul of equipment in four years Savage value of the equipment in five years Annual revenues and costs: $60,000 $100,000 $5,000 $10,000 Sales revenues Cost of Out-of-pocket operating costs $200,000 $125,000 $35,000 14% goods sold Discount rate Enter a formula into each of the cels marked wth a ? below Years Purchase of equipment Investment in working capital Sales Cost of Out-of-pocket operating costs Overhaul of equipment Salvage value of the equipment Working capital released Total cash flows (a) Discount factor (b) Present value of cash flows (a) x (b) Net present value goods sold 519 Use the formulas for the Time Value of Money Present value of $1-1/(1+r*n Present value of an annuity of $1-(1/r)(1-(1/(1+r*n)) where n is the number of years and r is the discount rate